Focus on the EURGBP Cross Rate

On a technical perspective the daily EURGBP daily chart formation has all the typical bullish signal in spite of the double top formation that it has been showing including the weekly formations. However, with the continuation of the volatility in the market, not to mention the back & forth scenario establish with the European debt crisis just adds to the wider price fluctuations seen through out the past few weeks.

Now with that said, the irony of the matter is that the idiosyncrasy of the GBPUSD / EURGBP has time and again been proven that such a formation would otherwise move to the direction higher than most would really expect. Currently, with the EURGBP taking its steps further higher is at the 0.8926. With a steadier Euro from fundamentally supported by iad for Greece ( for now) again have been quite supportive for the cross rate as well. The reaction counter to the USDX corrective movement at the 75.50 from a 75.96 high made it happen. The EURUSD steadier to normal higher move with a secondary move lower for the GBPUSD would fuel the next leg higher for the cross to attain it initial objective above the 0.9010 or better. Depending on the volumes and momentum build up would determine the time frame that this move would hold for the time being.

Plus the 'Rising Three Methods' identified on the candlestick formation would trigger technicians to re-establish long EURGBP positions the same way we have done so. This strategy is applied to maximize the profit and market potential of the EURGBP strength, with slight to lower corrective moves for the GBPUSD to fuel the direction higher. While the EURUSD holds just above the 38% Fibonacci rising fan formation as indicated on the chart. This has been our simple approach applied whenever such typical candlestick formation occurs. Keeping the short with protective trailing stops to liquidate/settle our shorts on the way up; while maintain a cross trade long ( short term daily basis) on the EURGBP to cover the probable loss on floating pips on the GBPUSD. Thus maximizing the market potential on both directions without having to sacrifice the quality of trades made from the past week of June 07 to the current time frame involve. Please refer to our continuing market strategies applied from June 07 from our market view analysis and the corresponding chart formation and video supporting these technical applications. However it may be, as the strategies made are with a substantial, managed and appropriate funds portfolio with a well defined risk appetite to follow whenever the opposite occurs.